Already viewed with deep suspicion by the county's workforce, Supervisor John Moorlach on Friday proposed overhauling Orange County's pension system and shrinking what he sees as an overly generous retirement plan for deputies and other law enforcement investigators.
Moorlach, who unveiled his proposal during a news conference, said he was targeting the "3% at 50" pension formula for deputies and district attorney's investigators. The formula was approved in 2002.
The supervisor has already angered law enforcement ranks by suggesting that they should not be treated differently from other county employees and by calling union leaders "thugs." In response, the union has tried to ban Moorlach from attending law enforcement functions, including funerals of officers killed in the line of duty.
Friday's announcement from Moorlach did little to improve relations.
"When our retirees were told of this, it was devastating to them," said Mike Carre, interim general manager of the 1,800-member union representing Orange County sheriff's deputies.
Under the current plan, deputies can retire at age 50 with 3% of their highest year's pay multiplied by each year of service.
The 2002 formula added a percentage point retroactively to a deputy's years of service -- a feature reviewed by pension experts who found that it "violated the state Constitution," Moorlach said.
The average annual pension for deputies who retired after 2002 came to $70,000 a year, said Mario Mainero, Moorlach's chief of staff.
"This is a gratuity, a gift of public funds," the supervisor said, adding that it was extra compensation the county was not authorized to provide by the state Legislature.
Moorlach has predicted devastating problems with the county's pension obligations and a looming healthcare bill to cover benefits for retirees. Under the deputies' formula, the county has an estimated future bill of $185 million, which is part of its overall $2.3 billion in unfunded pension costs.
Moorlach is proposing to halt use of the formula by the county pension board. His plan would affect only those deputies and investigators who have retired since 2002. A vote is expected at the board's July 31 meeting.
Board Chairman Chris Norby, who attended the news conference, said that he did not know how other supervisors would vote but that he supported Moorlach's plan. "As supervisors, we're sworn to uphold the state's Constitution."
